Worcester Business Journal

14 2018 Economic Forecast • Worcester Business Journal • www.wbjournal.com Holliston biotech Biostage announced in December a $4-million private investment for more than half of the company's ownership. "This agreement is a fantastic next step forward," Biostage CEO Jim McGorry said in the announcement. "Our focus is on closing the private placement, funding and being back in operation at a more efficient size and structure." The $4-million deal includes the pri- vate placement of 40 million of the company's common stock at 10 cents a piece, and gives the right to purchase another 60 million shares. The deal is structured in such a way the investor will own more than 50 percent of the company's stock. The investor advanced a $300,000 deposit on the private placement with the execution of the agreement. The investor's name is Bin Zhao, according to Biostage's U.S. Securities and Exchange Commission filings, although the company provided no other details. In exchange for the $4 million, Biostage gave two of its board seats to Bin Zhao. If the investor ends up owning more than 50 percent of the Biostage stock -- as the deal is structured to do -- then Biostage will give Bin Zhao a majority of the seats on the board. As part of the agreement, McGorry and Thomas McNaughton, Biostage's chief financial officer, agreed to waive their rights to any severance pay as a result of the company chang- ing ownership, according to the SEC filings. In the press release, McGorry said Biostage has been in survival mode for the past two months since an invest- ment agreement with Texas investor First Pecos fell through. In October, the company laid off 17 Intelligent BUSINESS Solutions Info: ICCreditUnion.org or businessbanking@iccreditunion.com Focus on your BUSINESS We've got the BANKING! Intelligent Business Solu ons Opera ons Flexibility Expansion Insulet breaks ground on $100M Acton facility I nsulin pump manufacturer Insulet has broken ground on a 350,000-square- foot facility in Acton. A groundbreak- ing ceremony in October signaled the start of con- struction at the company's 26-acre site the company says will provide additional manufac- turing capabilities in its large and growing U.S. customer base. The company will bring with it hun- dreds of manufacturing jobs after pro- ducing its devices at a contract manu- facturing facility in China. Insulet purchased the current 201-square-foot facility for $9.25 mil- lion in February. The project repre- sents a $100-million investment. Gov. Charlie Baker, in attendance at the groundbreaking ceremony, said in a statement the company, which already has a location in Billerica, has been an important piece of the local economy for years. "We are excited to see Insulet's con- tinued growth in Massachusetts, including the manufacturing jobs and innovations that will come from this new Acton facility," Baker said. Biostage scores $4M private investment, eyes turnaround T wo months after laying off more than 70 percent of its workforce and being delisted from Nasdaq, Continued from Page 13 M a n u f a c t u r i n g & T e c h n o l o g y Craft brew growth The growing trend toward more craft breweries nationally has been mirrored in Massachusetts. Source: Brewers Association, Mass. Brew Bros. 0 30 60 90 120 150 0 1,000 2,000 3,000 4,000 5,000 6,000 '11 '12 '13 '14 '15 '16 '17 '11 '12 '13 '14 '15 '16 Mass. breweries National breweries 5,301 140+ Gov. Charlie Baker

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